Chipotle Mexican Grill, Inc. (NYSE:CMG) Heads to $500

CHIPOTLE MX GRL closed down -7.970 at 640.230. Volume was 8% above average (neutral) and Bollinger Bands were 103% wider than normal.

Open High Low Close Volume___
648.000 651.150 640.050 640.230 100,245

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 664.98 711.83 676.90
Volatility: 35 31 29
Volume: 109,111 85,057 81,745

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

CHIPOTLE MX GRL is currently 5.4% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of CMG.N (mildly bearish). Our trend forecasting oscillators are currently bearish on CMG.N and have had this outlook for the last 8 periods. Our momentum oscillator is currently indicating that CMG.N is currently in an oversold condition. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.

Chipotle Mexican Grill Inc said on Sunday it had closed all its restaurants in two West Coast markets due to a reported outbreak of E. coli bacteria that is being investigated by the company and health authorities.

“After being notified by health department officials in the Seattle (Wash.) and Portland, Ore. areas that they were investigating approximately 20 cases of E. coli, including people who ate at six of our restaurants in those areas, we immediately closed all of our restaurants in the area out of an abundance of caution,” company spokeswoman Danielle Moore said in an emailed statement.

Moore said the vast majority of Chipotle stores in the area had reported no problems. “We offer our deepest sympathies to those that have been affected by this situation.”

The 1,700-outlet restaurant has grown quickly since it opened in 1993 with a single location, distinguishing itself from typical fast food restaurants. It prides itself on its healthy and high-quality fresh ingredients used in its menu of burritos, tacos and salads.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 17.1866. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 2 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 26.87. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 4 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -78. This is not a topping or bottoming area. The last signal was a buy 3 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 9 period(s) ago.

Chipotle Mexican Grill, Inc. (Chipotle), incorporated on January 30, 1998, develops and operates Chipotle Mexican Grill restaurants. The Chipotle Mexican Grill restaurants serve a focused menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads. As of December 31, 2014, the Company operated 1,755 Chipotle restaurants throughout the United States, as well as seven in Canada, six in England, three in France, and one in Germany. The Company’s restaurants also include nine ShopHouse Southeast Asian Kitchen restaurants, serving Asian-inspired cuisine. As of December 31, 2014, the Company also owned and operated two Pizzeria Locale restaurants, a fast casual pizza concept, resulting in a total of 1,783 restaurants. The Company sells gift cards which do not have an expiration date.

The Company categorizes its restaurants as either end-caps (at the end of a line of retail outlets), in-lines (in a line of retail outlets), free-standing or other. Of its restaurants in operation as of December 31, 2014, it had 1,081 end-cap locations, 283 in-line locations, 315 free-standing units, and 104 other. The average restaurant size is about 2,550 square feet and seats approximately 58 people. The Company’s restaurants also feature outdoor patio space. The Company’s restaurants accept orders by fax, online or through an iPhone or Android ordering application.

The Company also provides a variety of extras, such as guacamole, salsas and tortilla chips seasoned with fresh lime juice and kosher salt. In addition to sodas, fruit drinks and organic milk, the Company’s restaurants also offer a selection of beer and margaritas. The Company uses ingredients, which include chicken, and steak that is marinated and grilled in its restaurants, carnitas (seasoned and braised pork), barbacoa (spicy shredded beef) and vegetarian pinto and black beans. The Company adds its rice, which is tossed with lime juice and freshly chopped cilantro, as well as freshly shredded cheese, sour cream, lettuce, peppers and onions, depending on each customer’s request. It also uses various herbs, spices and seasonings to prepare its meats and vegetables. The Company’s restaurants serve only meats that were raised without the use of non-therapeutic antibiotics or added hormones, which are branded as Responsibly Raised.

The post Chipotle Mexican Grill, Inc. (NYSE:CMG) Heads to $500 appeared first on Live Trading News.